Workspace provider WeWork India has raised Rs 550 crore ($66.5 million) from BPEA Credit, a private credit platform, for fuelling growth plans.
The firm, which started its operations in India in 2017, has a presence in 41 locations across six major cities in India that include Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune.
WeWork India is a joint venture between commercial realty major Embassy Group, which owns majority stake in the firm, and WeWork International.
“We are laser-focused on fuelling growth opportunities and fortifying our position as the leading flexible workspace brand with customizable and innovative solutions for all businesses,” Karan Virwani, chief executive, WeWork India, said in a statement.
The capital raise comes amidst a “bullish” outlook of the company towards expansion for the coming year. The company has benefited from an industry-wide shift towards flexible workspaces after pandemic.
“With India Inc transitioning towards a hybrid work model, there has been a growing demand for flexibility,” WeWork India said, adding that it remains “prudent” about its overall business strategy.
The firm said it reported a revenue of Rs 1,300 crore in the CY22, compared to a revenue of Rs 760 crore previous year. It reported a positive Ebitda (earnings before interest, taxes, depreciation, and amortization) during the year of Rs 175 crore during the year, compared to a loss of Rs 175 crore in the year before.
Avendus Capital was financial adviser to WeWork India on the transaction.
“This fundraising by WeWork India strongly underscores the increasing confidence of the investment community in the growth prospects of India’s flex workspace sector. This would be one of the largest transactions in this sector and we are confident that it will open up many such investment opportunities,” said Prateek Jhawar, executive director and head, infrastructure & real assets investment banking, Avendus Capital.
WeWork India currently has over 62,000 members and covers 6 million square feet of space. Its portfolio comprises 70% of enterprises such as 3M, Khaitan & CO, Honeywell, Dyson and Kia. About 30% includes startups, freelancers, and small and medium enterprises.
